Tesla excelled in South Korea’s import market in 2024, delivering 29,750 vehicles despite market challenges.
This success contrasts sharply with the overall decline in imported vehicle sales, highlighting Tesla’s resilience in South Korea’s automotive sector.
Market Performance Analysis
The Korea Automobile Importers & Distributors Association reported 263,288 imported car sales in 2024, a 2.9% decline from 271,034 units in 2023.
However, this decline tells only part of the story.
Excluding Tesla’s sales, the imported car market saw an 11.9% year-over-year decline, underscoring Tesla’s significant positive impact on overall market performance.
Brand Leadership and Model Performance
Tesla secured its position as the third-strongest imported brand in South Korea, following only BMW and Mercedes-Benz.
The specific sales figures for the top three brands were:
BMW: 73,754 units
Mercedes-Benz: 66,400 units
Tesla: 29,750 units
Tesla’s success was primarily driven by two models:
- The Model Y emerged as the best-selling imported vehicle in South Korea, with 18,717 units sold in 2024.
- The Model 3 achieved fifth place among imported vehicles, with 10,502 units sold during the same period.
Economic Context and Market Challenges
The broader decline in South Korea’s automotive market can be attributed to several economic factors, as reported by FN News:
- Decreased consumer sentiment
- Persistently high interest rates
- Stagnant real wages
- Prolonged economic slowdown
Industry Perspectives
Key industry leaders have provided insights into the market conditions:
The Korea Automobile Mobility Industry Association representative emphasized how
“Consumer sentiment has been dampened by stagnant real wages due to continued high prices and high interest rates and the prolonged economic slump.”
Jeong Yoon-young, Vice Chairman of the Korea Automobile Importers & Distributors Association, noted that
“Imported car sales decreased year-on-year due to slowing demand caused by a decrease in consumer sentiment and shortages in some brands.”